1 Exampromax - Stuvia US
New Mexico Life and Health Exam Questions
and Answers 100% Correct Answers Already
Graded A+
Q: Insurance
Ans: A method of spreading the result of financial loss among a large number
people.
Q: Life Insurance
Ans: A contract under which one party (the insurer) in consideration of the
Exampromax - Stuvia US
premium payment, agrees to pay an amount stipulated in the contract to a
designated person (the beneficiary) upon the occurrence of a contingency defined
in the contract (usually that of death).
Q: Indemnity
Ans: The concept that insurance should restore the insured, in whole or in part,
to the condition he enjoyed before the loss.
Q: Risk
Ans: The uncertainty of financial loss.
Q: The 3 Types of Risk
Ans: 1) Pure Risk - there is only a chance of loss and there is no possibility of
gain.
2) Speculative Risk - involves both an uncertainty of loss and of gain.
3) Insurable Risk
Q: Insurable Risk
Ans: The more closely a risk align with the following characteristics, the more
insurable it is: Due to chance, measurable/predictable, it is based upon a large
enough pool, so that the law of large numbers allows for the accurate prediction
of loss, and there must be a significant potential for economic loss.
, 2 Exampromax - Stuvia US
Q: Methods of Handling Risk
Ans: -Avoidance
-Retention
-Sharing
-Reduction
Q: Exposure
Ans: A measure of vulnerability of loss, usually expressed in dollars or units, to
which an insurance rate is applied.
Q: Hazard
Ans: A specific situation that introduces or increases the probability of
occurrence of a loss.
Exampromax - Stuvia US
Q: The conditions that increase risk or the chance of a loss occurring:
Ans: Physical - arise from material, structural, or operation features of a risk
situation.
Moral - The Insured's habits.
Morale - Careless attitude on the part of the insured that increased the chance of
loss.
Legal - Court of legislative actions increases the risk of loss.
Q: Peril
Ans: The cause of a potential loss.
Q: Loss
Ans: The happening of the event for which insurance pays.
Q: The 4 Elements of a Legal Contract
Ans: 1) Offer and Acceptance
2) Consideration
3) Legal Purpose
4) Competent Parties
Q: Estoppel
New Mexico Life and Health Exam Questions
and Answers 100% Correct Answers Already
Graded A+
Q: Insurance
Ans: A method of spreading the result of financial loss among a large number
people.
Q: Life Insurance
Ans: A contract under which one party (the insurer) in consideration of the
Exampromax - Stuvia US
premium payment, agrees to pay an amount stipulated in the contract to a
designated person (the beneficiary) upon the occurrence of a contingency defined
in the contract (usually that of death).
Q: Indemnity
Ans: The concept that insurance should restore the insured, in whole or in part,
to the condition he enjoyed before the loss.
Q: Risk
Ans: The uncertainty of financial loss.
Q: The 3 Types of Risk
Ans: 1) Pure Risk - there is only a chance of loss and there is no possibility of
gain.
2) Speculative Risk - involves both an uncertainty of loss and of gain.
3) Insurable Risk
Q: Insurable Risk
Ans: The more closely a risk align with the following characteristics, the more
insurable it is: Due to chance, measurable/predictable, it is based upon a large
enough pool, so that the law of large numbers allows for the accurate prediction
of loss, and there must be a significant potential for economic loss.
, 2 Exampromax - Stuvia US
Q: Methods of Handling Risk
Ans: -Avoidance
-Retention
-Sharing
-Reduction
Q: Exposure
Ans: A measure of vulnerability of loss, usually expressed in dollars or units, to
which an insurance rate is applied.
Q: Hazard
Ans: A specific situation that introduces or increases the probability of
occurrence of a loss.
Exampromax - Stuvia US
Q: The conditions that increase risk or the chance of a loss occurring:
Ans: Physical - arise from material, structural, or operation features of a risk
situation.
Moral - The Insured's habits.
Morale - Careless attitude on the part of the insured that increased the chance of
loss.
Legal - Court of legislative actions increases the risk of loss.
Q: Peril
Ans: The cause of a potential loss.
Q: Loss
Ans: The happening of the event for which insurance pays.
Q: The 4 Elements of a Legal Contract
Ans: 1) Offer and Acceptance
2) Consideration
3) Legal Purpose
4) Competent Parties
Q: Estoppel
